AA and Tulsa Union Reach Tentative Agreement

DALLAS (AP) — A labor union says it has tentative contract agreements that would grant pay raises for mechanics and other ground workers at American Airlines.

The Transport Workers Union says a ratification vote will end in August before a federal bankruptcy court judge rules on whether American can impose its own terms for pay and benefits. The contract proposal calls for a 3% increase in pay. That is the same pay-hike offered to the pilot’s union.

The deals were announced on the same day that the CEO of American and parent AMR Corp. said the company is moving ahead with consideration of strategic options including a possible merger.

Tulsa Chamber of Commerce President Mike Neal was pleased with the announcement. “The Chamber applauds the leadership of the Transport Workers Union and American Airlines management for reaching a tentative agreement on the Maintenance and Operations labor contract. We hope this positive agreement will be ratified by the full TWU membership, ultimately aiding the company in successfully emerging from Chapter 11 reorganization. Working with Tulsa Mayor Dewey Bartlett, Tulsa County Commission Chairman John Smaligo, regional mayors, Tulsa County Commissioners, Tulsa City Council and other partners, the Chamber remains committed to assisting TWU and American Airlines while ensuring the aerospace sector continues to preserve and grow aerospace jobs in the Tulsa region.”